Australia will start tightening visa rules for international students this week as official figures reveal migration has hit a record high, jeopardising the rental market.
English language requirements for student and graduate visas will be raised from Saturday, with the government gaining the power to suspend education providers from recruiting international students if they repeatedly breach the rules. Home Affairs Minister Clare O’Neil stated:
The actions this weekend will continue to drive migration levels down while delivering on our commitments in the migration strategy to fix the broken system we inherited.
A new “genuine student test” will be introduced to further tighten measures against international students who hope to come to Australia primarily to work.
The changes followed the reversal of COVID-era concessions introduced by the former government, including unlimited working hours for foreign students. The country increased annual migration figures in 2022 to help fill staff shortages after the COVID-19 pandemic led to tighter border controls and prevented foreign students and workers from entering the country for nearly two years.
However, a sudden influx of foreign workers and students added pressure to the rental market. The Australian Bureau of Statistics reported on Thursday that net immigration rose 60 per cent to a record 548,800 over the year as of 30 September, 2023, nearly 31,000 higher than the June figure for the same year.
In total, Australia’s population grew by 2.5 per cent to 26.8 million, marking the fastest pace in the country’s history.
Record migration caused by students from China, India and the Philippines increased labour supply and kept wage pressures in check. On the other hand, migration exacerbated an already tight housing market, with rental vacancies hovering at record lows and high construction costs limiting new supply.
O’Neil stated that government action since September had resulted in lower levels of migration, with recent international student visa grants down 35 per cent on the previous year.
